2075 Woodside Road | Redwood City, CA 94061
(650) 260-0005 | peninsulacleanenergy.com
SPECIAL Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
AGENDA
Monday, August 15, 2022
8:30 a.m.
Zoom Link: https://pencleanenergy.zoom.us/j/82172572134 Meeting ID: 821-7257-2134 Passcode: 2075 Phone: +1(253)215-8782 NOTE: Please see attached document for additional detailed teleconference instructions.
In accordance with AB 361, the Committee will adopt findings that meeting in person would present imminent risks to the health or safety of attendees of in-person meetings. Consistent with those findings, this Committee Meeting will be held remotely. PCEA shall make every effort to ensure that its video conferenced meetings are accessible to people with disabilities as required by Governor Newsom’s March 17, 2020 Executive Order N-29-20. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials should contact Nelly Wogberg, Board Clerk, at least 2 working days before the meeting at [email protected]. Notification in advance of the meeting will enable PCEA to make best efforts to reasonably accommodate accessibility to this meeting and the materials related to it.
If you wish to speak to the Audit and Finance Committee, please use the “Raise Your Hand” function in the Zoom platform or press *6 if you phoned into the meeting. If you have anything that you wish to be distributed to the Audit and Finance Committee and included in the official record, please send to [email protected].
CALL TO ORDER / ROLL CALL
PUBLIC COMMENT
This item is reserved for persons wishing to address the Committee on any PCEA-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. Members of the public who wish to address the Board are customarily limited to two minutes per speaker. The Board Chair may increase or decrease the time allotted to each speaker.
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS
1. Adopt Findings Pursuant to AB 361 to Continue Fully Teleconferenced Committee Meetings Due to Health Risks Posed by In-Person Meetings
2. Approval of the Minutes for the June 13, 2022 Audit & Finance Committee Meeting
REGULAR AGENDA
3. Chair Report (Discussion)
1 4. Staff Report (Discussion)
5. Review Financial Reports and Investment Summary for 4th Quarter Fiscal Year (FY) 2021-2022 (Discussion)
6. Review of the Audit Schedule (Discussion)
7. Review of Investment Managers (Discussion)
8. Committee Members’ Reports (Discussion)
ADJOURNMENT
Public records that relate to any item on the open session agenda are available for public inspection. The records are available at the Peninsula Clean Energy offices or on PCEA’s Website at: https://www.peninsulacleanenergy.com. 2 Instructions for Joining a Zoom Meeting via Computer or Phone Best Practices:
• Please mute your microphone when you are not speaking to minimize audio feedback • If possible, utilize headphones or ear buds to minimize audio feedback • If participating via videoconference, audio quality is often better if you use the dial-in option (Option 2 below) rather than your computer audio
Options for Joining
A. Videoconference with Computer Audio – see Option 1 below B. Videoconference with Phone Call Audio– see Option 2 below C. Calling in via Telephone/Landline – see Option 3 below Videoconference Options:
Prior to the meeting, we recommend that you install the Zoom Meetings application on your computer by clicking here https://zoom.us/download.
If you want full capabilities for videoconferencing (audio, video, screensharing) you must download the Zoom application.
Option 1 Videoconference with Computer Audio:
1. From your computer, click on the following link that is also included in the Meeting Calendar Invitation : https://pencleanenergy.zoom.us/j/82172572134
2. The Zoom application will open on its own or you will be instructed to open Zoom.
3. After the application opens, the pop-up screen below will appear asking you to choose ONE of the audio conference options. Click on the Computer Audio option at the top of the pop-up screen.
4. Click the blue, “Join with Computer Audio” button.
5. In order to enable video, click on “Start Video” in the bottom left-hand corner of the screen. This menu bar is also where you can mute/unmute your audio.
3 Option 2 Videoconference with Phone Call Audio:
1. From your computer, click on the following link that is also included in the Meeting Calendar Invitation: https://pencleanenergy.zoom.us/j/82172572134
2. The Zoom Application will open on its own or you will be instructed to Open Zoom.
3. After the application opens, the pop-up screen below will appear asking you to choose ONE of the audio conference options. Click on the Phone Call option at the top of the pop-up screen.
4. Please dial +1 (253) 215-8782.
5. You will be instructed to enter the meeting ID: 821-7257-2134 followed by #.
6. You will be instructed to enter in your participant ID. Your participant ID is unique to you and is what connects your phone number to your Zoom account.
7. After a few seconds, your phone audio should be connected to the Zoom application on your computer.
8. In order to enable video, click on “Start Video” in the bottom left-hand corner of the screen. This menu bar is also where you can mute/unmute your audio.
Audio Only Options:
Please note that if you call in/use the audio only option, you will not be able to see the speakers or any presentation materials in real time.
Option 3: Calling in via Telephone/Landline:
1. Dial +1 (253) 215-8782.
2. You will be instructed to enter the meeting ID: 821-7257-2134 followed by #.
3. You will be instructed to enter your Participant ID followed by #. If you do not have a participant ID or do not know it, you can press # to stay on the line.
4. You will be instructed to enter the meeting passcode 2075 followed by #. 4 Item No. 1
PENINSULA CLEAN ENERGY AUTHORITY
JPA Board Correspondence
DATE: June 6, 2022
COMMITTEE MEETING DATE: June 13, 2022
SPECIAL NOTICE/HEARING: None
VOTE REQUIRED: Majority Present
TO: Honorable Peninsula Clean Energy Authority Audit & Finance Committee
FROM: Jan Pepper, Chief Executive Officer, Peninsula Clean Energy Authority SUBJECT: Resolution to Make Findings Allowing Continued Remote Meetings Under Brown Act
RECOMMENDATION: ..titl e
Adopt a resolution finding that, as a result of the continuing COVID-19 pandemic state of emergency declared by Governor Newsom, meeting in person would present imminent risks to the health or safety of attendees.
..body
BACKGROUND:
On June 11, 2021, Governor Newsom issued Executive Order N-08-21, which rescinded his prior Executive Order N-29-20 and set a date of October 1, 2021 for public agencies to transition back to public meetings held in full compliance with the Brown Act. The original Executive Order provided that all provisions of the Brown Act that required the physical presence of members or other personnel as a condition of participation or as a quorum for a public meeting were waived for public health reasons.
On September 16, 2021, the Governor signed AB 361, a bill that formalizes and modifies the teleconference procedures implemented by California public agencies in response to the Governor’s Executive Orders addressing Brown Act compliance during shelter-in-place periods. AB 361 allows a local agency to continue to use teleconferencing under the same basic rules as provided in the Executive Orders when certain circumstances occur or when certain findings have been made and adopted by the local agency.
AB 361 requires that, if the state of emergency remains active for more than thirty (30) days, the agency must make findings by majority vote to continue using the bill’s exemption to the Brown Act teleconferencing rules. The findings are to the effect that the need for teleconferencing persists due to the nature of the ongoing public health emergency and the social distancing recommendations of local public health officials.
Effectively, this means that agencies, including PCEA, must agendize a Brown Act meeting and make findings regarding the circumstances of the emergency on a thirty (30) day basis. If at least thirty (30) days have transpired since its last meeting, 5 Item No. 1
the Boards must vote whether to continue to rely upon the law’s provision for teleconference procedures in lieu of in-person meetings.
AB 361 allows for meetings to be conducted virtually as long as there is a gubernatorially-proclaimed public emergency in combination with (1) local health official recommendations for social distancing or (2) adopted findings that meeting in person would present risks to health. AB 361 will sunset on January 1, 2024.
On September 25, 2021, the Peninsula Clean Energy Board of Directors approved a thirty (30) day extension of remote meetings in accordance with AB 361. Out of an abundance of caution given AB 361’s narrative that describes each legislative body’s responsibility to reauthorize remote meetings, staff and counsel brings this memo and corresponding resolution to the attention of the Audit and Finance Committee.
On September 29, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On October 12, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On November 8, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On November 18, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On February 14, 2022, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On May 9, 2022, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
On June 13, 2022, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361.
DISCUSSION:
Because of continuing concerns regarding COVID-19 transmission, especially when individuals are grouped together in close quarters, it is recommended that the Peninsula Clean Energy Audit and Finance Committee avail itself of the provisions of AB 361 allowing continuation of online meetings by adopting findings to the effect that conducting in-person meetings would present risk to the health and safety of attendees. A resolution to that effect and directing staff to agendize the renewal of such findings in the event that thirty (30) days has passed since the Committee’s last meeting, is attached hereto. 6 28637147v1
RESOLUTION NO. _____________
PENINSULA CLEAN ENERGY AUTHORITY, COUNTY OF SAN MATEO,
STATE OF CALIFORNIA
* * * * * *
RESOLUTION FINDING THAT, AS A RESULT OF THE CONTINUING COVID-19
PANDEMIC STATE OF EMERGENCY DECLARED BY GOVERNOR NEWSOM,
MEETING IN PERSON FOR MEETINGS OF THE PENINSULA CLEAN ENERGY
EXECUTIVE COMMITTEE WOULD PRESENT IMMINENT RISKS TO THE HEALTH OR
SAFETY OF ATTENDEES
______________________________________________________________ WHEREAS, on March 4, 2020, the Governor proclaimed pursuant to his authority under the California Emergency Services Act, California Government Code section 8625, that a state of emergency exists with regard to a novel coronavirus (a disease now known as COVID-19); and
WHEREAS, on June 4, 2021, the Governor clarified that the “reopening” of California on June 15, 2021 did not include any change to the proclaimed state of emergency or the powers exercised thereunder, and as of the date of this Resolution, neither the Governor nor the Legislature have exercised their respective powers pursuant to California Government Code section 8629 to lift the state of emergency either by proclamation or by concurrent resolution in the state Legislature; and WHEREAS, on March 17, 2020, Governor Newsom issued Executive Order N-29-20 that suspended the teleconferencing rules set forth in the California Open Meeting law, Government Code section 54950 et seq. (the “Brown Act”), provided certain requirements were met and followed; and
7 28637147v1
WHEREAS, on September 16, 2021, Governor Newsom signed AB 361 that provides that a legislative body subject to the Brown Act may continue to meet without fully complying with the teleconferencing rules in the Brown Act provided the legislative body determines that meeting in person would present imminent risks to the health or safety of attendees, and further requires that certain findings be made by the legislative body every thirty (30) days; and,
WHEREAS, on January 5, 2022, Governor Newsom extended the sunset provision of AB361 and Government Code Section 11133(g) to January 1, 2024 due to surges and instability in COVID-19 cases; and,
WHEREAS, California Department of Public Health (“CDPH”) and the federal Centers for Disease Control and Prevention (“CDC”) caution that COVID-19 continues to be highly transmissible and that even fully vaccinated individuals can spread the virus to others; and,
WHEREAS, the Committee has an important governmental interest in protecting the health, safety and welfare of those who participate in its meetings; WHEREAS, on September 25, 2021, the Peninsula Clean Energy Board of Directors approved a thirty (30) day extension of remote meetings in accordance with AB 361. Out of an abundance of caution given AB 361’s narrative that describes each legislative body’s responsibility to reauthorize remote meetings, staff and counsel bring this resolution to the attention of the Audit & Finance Committee, and; 8 28637147v1
WHEREAS, on September 29, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on October 12, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on November 8, 2021, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on February 14, 2022, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on May 9, 2022, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, on June 13, 2022, the Peninsula Clean Energy Audit and Finance Committee approved a thirty (30) day extension of remote meetings in accordance with AB 361, and;
WHEREAS, in the interest of public health and safety, as affected by the emergency caused by the spread of COVID-19, the Committee deems it necessary to find that meeting in person would present imminent risks to the health or safety of 9 28637147v1
attendees, and thus intends to invoke the provisions of AB 361 related to teleconferencing.
NOW, THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that
1. The recitals set forth above are true and correct.
2. The Committee finds that meeting in person would present imminent risks to the health or safety of attendees.
3. Staff is directed to return no later than thirty (30) days, or, alternatively, at the next scheduled meeting of the Committee, after the adoption of this resolution with an item for the Committee to consider making the findings required by AB 361 in order to continue meeting under its provisions.
4. Staff is directed to take such other necessary or appropriate actions to implement the intent and purposes of this resolution.
* * * * * *
10 Item No. 2
Regular Meeting of the Audit and Finance Committee of the Peninsula Clean Energy Authority (PCEA)
Minutes
Monday, June 13, 2022
8:30 a.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 8:32 a.m. in virtual teleconference.
ROLL CALL
Participating Remotely:
Donna Colson, Burlingame
Carlos Romero, East Palo Alto
Laurence May, Hillsborough, Chair
John Keener, Director Emeritus
Pradeep Gupta, Director Emeritus
Absent: Jeff Aalfs, Portola Valley
A quorum was established.
PUBLIC COMMENT
None
ACTION TO SET AGENDA AND TO APPROVE CONSENT AGENDA ITEMS MOTION: Director Colson moved, seconded by Director Romero to set the Agenda and approve Agenda Item Number 1.
1. Adopt Findings Pursuant to AB 361 to Continue Fully Teleconferenced Committee Meetings Due to Health Risks Posed by In-Person Meetings MOTION PASSED: 3-0 (Absent: Portola Valley)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 3 1
MOTION: Director Romero moved, seconded by Chair May to set the Agenda and approve Agenda Item Number 2.
11 Item No. 2
2. Approval of the Minutes for the May 9, 2022 Meeting
MOTION PASSED: 3-0 (Absent: Portola Valley)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs X
Totals 3 1
REGULAR AGENDA
3. Chair Report
None
4. Staff Report
None
5. Recommend Approval of Fiscal Year 2022-2023 Budget (Action) Andy Stern, Chief Financial Officer, gave a presentation of the final draft of the Fiscal Year 2022- 2023 Budget including key assumptions, PG&E and Power Charge Indifference Adjustment rate change summary, and a budget summary and 5-year plan.
Vice Chair Colson asked for clarification on the contingency reserves. Andy explained that contingency reserves are not shown as a line item on the summary page because it is embedded in the Cost of Energy line.
Chair May asked about the relative performance of Peninsula Clean Energy’s investment portfolio. Director Colson suggested that investment portfolios should be viewed with a three to five year time horizon and not changed as a reaction to the market. Chair May suggested making the advisor aware of goals that were set 2.5 years ago. Andy added that the investment managers will be making a presentation at the August Audit and Finance Committee meeting.
Vice Chair Colson asked if the contingency reserves in the Cost of Energy line could only be used for cost of energy. Andy explained that Board approval would be required if the overall changes exceeded those approved in the proposed Resolution.
Director Colson asked how Peninsula Clean Energy’s 8% operating margin compared to other Community Choice Aggregations (CCAs). Andy reported that he has not seen the budgets of other CCAs but that many CCAs would see dramatic changes in their financial outlooks, especially those with rates tied to PG&E.
Director Romero suggested a follow-up conversation with the Board on how to handle the $74 million change in net position. Director Colson added that some markers may need to be added to days cash on hand to signify if actions need to be taken. 12 Item No. 2
MOTION: Director Romero moved, seconded by Director Colson to recommend approval of the Fiscal Year 2022-2023 Budget.
MOTION PASSED: 3-0 (Absent: Portola Valley)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
Burlingame Director Colson X
East Palo Alto Director Romero X
Hillsborough Director May X
Portola Valley Director Aalfs 1
Totals 3
6. Overview of Stochastic Modeling to Evaluate and Measures Risk to Cost of Energy (Discussion) (Continued from May 09, 2022 Meeting)
Mehdi Shahriari, Senior Renewable Energy Analyst, continued a presentation from the May 9, 2022 Audit and Finance Committee Meeting detailing the Stochastic Analysis, background, examples of hourly simulation, cost of energy and load.
Director Emeritus Gupta asked if the serial correlation between hours was considered. Mehdi explained that yes, this was taken into account and that the stochastic simulation considers temperature in forecasting the load.
Director Emeritus Keener asked for clarification on the Price-Load Correlation graphs. Mehdi explained that the differing y-axis is due to pricing differences between August and December.
Vice Chair Colson asked if this type of modeling should be used as the basis from which to put the contingency in. Andy Stern, Chief Financial Officer, explained that this would make sense as currently the contingency number is arbitrarily made up and it would make sense to get this analysis in advance of the budgeting cycle. Director Romero asked how the arbitrary contingency number compared to what this model put out. Mehdi explained the difference was between $254 million and $245 million. Andy explained that this is approximately $10 million in contingency and the budget used $15 million.
Director Romero asked if this would have helped to address the issue of the Power Change Indifference Adjustment (PCIA). Andy explained that there is some aspect of how energy costs effect the PCIA.
7. Overview of Government Solar Business Models (Discussion Rafael Reyes, Director of Energy Programs, and Dave Fribush, Local Power Manager Contractor, gave a presentation with an overview of the Local Government Solar and Storage Program including a program overview, projects in the portfolio, the general deal structure, key customers PPA contract terms, basic financials, procurement models and tax structure as well as key next steps.
Director Romero asked if Peninsula Clean Energy would be liable for providing power at a particular guaranteed rate. Dave explained that the production guarantee would come from the EPC firm and Peninsula Clean Energy would pass that along. 13 Item No. 2
Chair May asked how Peninsula Clean Energy’s labor goals are being addressed. Dave explained that the guidelines are coming from San Mateo County as well as Peninsula Clean Energy and that key one would be prevailing wage as well as any standard requirements in normal RFPs, and that the procurement requirements exist in either procurement model.
Dave explained that this project has been thoroughly vetted by Peninsula Clean Energy’s legal team, an external law firm, and an ITC Federal Tax Specialist. Rafael added that other Community Choice Aggregators including East Bay Community Energy and Cal Choice are also considering a plan similar to this.
Vice Chair Colson asked about California state laws regarding net energy metering for this situation. Jan Pepper, CEO, explained that the California Public Utilities Commission put out a controversial proposed decision, and that Peninsula Clean Energy is currently in the process of providing comments on a portion of their proposal. Jan predicts that the earliest NEM 3.0 might be adopted is September or October, but that others believe it may be postponed until November.
Director Romero asked a series of questions including: if this type of deal structure had been used before, what is the legal structure of the deal, what does the back end of the tax credit period look like, what is Peninsula Clean Energy’s role in the partnership, have there been any CCA’s that have entered a deal like this yet? Jan Pepper suggested setting up a separate meeting to discuss these detailed questions.
8. Committee Members’ Reports
None
ADJOURNMENT
Meeting was adjourned at 10:19 a.m.
14 Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
June 30, 2022
($000s)
15 Fiscal Year Ending Actual/Budget Amount Fiscal Year Ending Actual/Budget Amount June 30, 2016 Audited ($1,044) June 30, 2016 Audited $2,333 June 30, 2017 Audited $21,711 June 30, 2017 Audited $17,382 June 30, 2018 Audited $85,365 June 30, 2018 Audited $64,889 June 30, 2019 Audited $140,135 June 30, 2019 Audited $114,069 June 30, 2020 Audited $188,923 June 30, 2020 Audited $178,176 June 30, 2021 Audited $180,343 June 30, 2021 Audited $166,173 June 30, 2022 Unaudited $167,367 June 30, 2022 Unaudited $135,511 June 30, 2022 Budget $165,599 June 30, 2022 Budget $165,593 Fiscal Year Actual/Budget Amount Fiscal Year Actual/Budget Amount FY2015‐2016 Audited ($1,044) FY2015‐2016 Audited $0
FY2016‐2017 Audited $22,755 FY2016‐2017 Audited $64,501 FY2017‐2018 Audited $63,655 FY2017‐2018 Audited $170,135 FY2018‐2019 Audited $54,774 FY2018‐2019 Audited $194,035 FY2019‐2020 Audited $48,788 FY2019‐2020 Audited $216,066 FY2020‐2021 Audited ($8,285) FY2020‐2021 Audited $213,834 June 30, 2022 Unaudited YTD ($12,977) June 30, 2022 Unaudited YTD $226,679 FY2021‐2022 Budget ($18,672) FY2021‐2022 Budget $216,706 Fiscal Year Actual/Budget Amount Fiscal Year Actual/Budget Amount FY2015‐2016 Audited $0 FY2015‐2016 Audited $1,041
FY2016‐2017 Audited $93,129 FY2016‐2017 Audited $70,104 FY2017‐2018 Audited $244,738 FY2017‐2018 Audited $180,970 FY2018‐2019 Audited $259,782 FY2018‐2019 Audited $206,964 FY2019‐2020 Audited $278,093 FY2019‐2020 Audited $231,482 FY2020‐2021 Audited $228,101 FY2020‐2021 Audited $236,373 June 30, 2022 Unaudited YTD $239,230 June 30, 2022 Unaudited YTD $246,546 FY2021‐2022 Budget $222,240 FY2021‐2022 Budget $241,812 Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
Revenues Total Operating Expenses
June 30, 2022
($000s)
Net Position Balance Unrestricted Cash/Investments Balance Change in Net Position Cost of Electricty
16 NOTE: FINANCIAL STATEMENTS ARE PRELIMINARY UNTIL THE ANNUAL AUDIT IS COMPLETED. ‐ Revenues above Budget. Revenues were $33.65 MM below Budget in Q4; significantly above the budgeted level.
Total load was 8.0% below budget for Q4, running below Budget all year.
Residential load was 10.2% below Budget level. Commercial loads also below Budget, but to a lesser extent. ‐ Total Expenses above Budget. Total Expenses were $10.6 MM above Budget in Q4 ‐ Most categories continued below Budget except Cost of Energy as energy prices spiked in the past 4‐6 months.
Two expense categories were above Budget in Q$ (fees for PG&E Service Fees and Data Manager) due to higher customer counts following Los Banos service adoption.
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
Customer Accounts Energy Used
June 30, 2022
($000s)
YTD Revenues YTD Expenses
$222,240
$239,230
$0 $50,000 $100,000 $150,000 $200,000 $250,000
YTD Revenues ‐ Actual vs. Budget
Actual Revenues ‐ YTD Budget Revenues ‐ YTD
$241,812$246,546
$0 $50,000 $100,000 $150,000 $200,000 $250,000
YTD Expenses ‐ Actual vs. Budget
Actual Expenses ‐ YTD Budget Expenses ‐ YTD
280,251 ,
90.6%
29,100 ,
9.4%
Customer Accounts
Residential Commercial/Industrial
1,376,278 ,
41.3%
1,953,071 ,
58.7%
YTD Customer Energy Billed (MWh)
Residential Commercial/Industrial
17 Actual Budget
Variance:
Favorable /
(Unfavorable)
YTD Actual as
% of YTD
Budget Budget
YTD Actual as
% of Full Year
Budget
Prior Year
Actual (YTD)
OPERATING REVENUES
Electricity Sales, net 236,371 $ $ 219,619 $ 16,752 107.6% 219,619 $ 107.6% 225,452 $ Green electricity premium 2,859 2,621 238 109.1% 2,621 109.1% 2,650 Total Operating Revenues $239,230 $222,240 $16,990 107.6% $222,240 107.6% $228,101
OPERATING EXPENSES
Cost of energy 226,679 216,706 (9,973) 104.6% 216,706 104.6% 213,834 Staff compensation 6,351 6,464 113 98.3% 6,464 98.3% 5,637 Data Manager 3,417 3,420 3 99.9% 3,420 99.9% 3,385Service Fees ‐ PG&E 1,267 1,260 (7) 100.5% 1,260 100.5% 1,255Consultants/Professional Svcs 1,085 1,351 266 80.3% 1,351 80.3% 1,995Legal 1,174 1,616 441 72.7% 1,616 72.7% 1,372Communications/Noticing 1,527 2,068 541 73.8% 2,068 73.8% 1,417General and Administrative 2,033 2,259 226 90.0% 2,259 90.0% 1,666 Community Energy Programs 2,931 6,556 3,625 44.7% 6,556 44.7% 5,722 Depreciation 82 112 30 73.0% 112 73.0% 91
Total Operating Expenses 246,546 241,812 (4,734) 102.0% 241,812 102.0% 236,373 Operating Income (Loss) ($7,317) ($19,572) $12,255 37.4% ($19,572) 37.4% ($8,272)Total Nonoperating Inc/(Exp) (5,660) 900 ‐ (6,560) 628.9% 900 ‐628.9% (13) CHANGE IN NET POSITION ($12,977) ($18,672) $5,695 ($18,672) ($8,285) Year‐to‐date Full Year (FY 2021‐2022)
Peninsula Clean Energy
Performance at a Glance
Results for the Fiscal Quarter Ended
June 30, 2022
($000s)
18 1
ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
Peninsula Clean Energy Authority
Management is responsible for the accompanying financial statements of Peninsula Clean Energy Authority (PCE), a California Joint Powers Authority, which comprise the statement of net position as of June 30, 2022, and the statement of revenues, expenses, and changes in net position, and the statement of cash flows for the period then ended, in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
PCE’s annual audited financial statements will include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to PCE because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
August 1, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com 19 ASSETS
Current assets
Cash and cash equivalents 9,777,452 $
Accounts receivable, net of allowance 32,869,379
Accrued revenue 20,721,981
Investments 17,564,207
Other receivables 2,986,880
Prepaid expenses 4,976,571
Deposits 5,454,023
Total current assets 94,350,493
Noncurrent assets
Investments 107,748,793
Deposits and other assets 192,878
Lease asset 1,797,349
Capital assets, net of depreciation 261,774
Total noncurrent assets 110,000,794
Total assets 204,351,287
LIABILITIES
Current liabilities
Accrued cost of electricity 27,138,918
Accounts payable 1,171,803
Other accrued liabilities 1,078,334
User taxes and energy surcharges due to other governments 1,081,831 Supplier deposits - energy suppliers 2,624,090
Lease liability 468,691
Total current liabilities 33,563,667
Noncurrent liabilities
Supplier deposits - energy suppliers 1,653,433
Lease liability 1,767,519
Total noncurrent liabilities 3,420,952
Total liabilities 36,984,619
NET POSITION
Investment in capital assets 261,774
Unrestricted 167,104,894
Total net position 167,366,668 $
As of June 30, 2022
STATEMENT OF NET POSITION
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 2 20
OPERATING REVENUES
Electricity sales, net 233,526,144 $
Green electricity premium 2,858,977
Grant revenue 2,844,600
Total operating revenues 239,229,721
OPERATING EXPENSES
Cost of electricity 226,678,063
Contract services 10,188,610
Staff compensation 6,351,193
General and administration 2,747,243
Depreciation and amortization 504,407
Total operating expenses 246,469,516
Operating income (loss) (7,239,795)
NONOPERATING REVENUES (EXPENSES)
Liquidated damages revenue 493,183
Interest and investment income (loss) (6,153,368)
Finance costs (76,751)
Nonoperating revenues (expenses), net (5,736,936)
CHANGE IN NET POSITION (12,976,731)
Net position at beginning of period (as restated) 180,343,399 Net position at end of period 167,366,668 $
PENINSULA CLEAN ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET POSITION
Twelve Months Ended June 30, 2022
See accountants' compilation report. 3 21
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 216,532,488 $
Receipts from grantors 2,844,600
Receipts from supplier security deposits 2,639,091
Payments to suppliers for electricity (226,221,013)
Payments for other goods and services (12,725,342)
Payments for staff compensation (6,249,329)
Payments of taxes and surcharges to other governments (3,547,693) Net cash provided (used) by operating activities (26,727,198)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Deposits and collateral received 4,000,000
Finance costs paid (76,751)
Deposits and collateral paid (5,616,033)
Net cash provided (used) by non-capital
financing activities (1,692,784)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments on lease asset (533,806)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from investment sales 58,926,086
Investment income received 1,947,354
Purchase of investments (38,295,803)
Net cash provided (used) by investing activities 22,577,637 Net change in cash and cash equivalents (6,376,151)
Cash and cash equivalents at beginning of period 16,153,603 Cash and cash equivalents at end of period 9,777,452 $
Twelve Months Ended June 30, 2022
STATEMENT OF CASH FLOWS
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 4 22
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating income (loss) (7,239,795) $
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation and amortization expense 504,407
Provision for uncollectible accounts (38,138)
Nonoperating liquidated damages revenue 493,183
(Increase) decrease in:
Accounts receivable (14,421,245)
Accrued revenue (9,766,970)
Other receivables 1,305,636
Prepaid expenses (1,405,359)
Increase (decrease) in:
Accrued cost of electricity 3,564,668
Accounts payable (75,305)
Other accrued liabilities 69,820
User taxes and energy
surcharges due to other governments 333,207
Supplier security deposits (51,307)
Net cash provided (used) by operating activities (26,727,198) $ Twelve Months Ended June 30, 2022
STATEMENT OF CASH FLOWS (continued)
PENINSULA CLEAN ENERGY AUTHORITY
See accountants' compilation report. 5 23
Cash Disbursements - 2,519,430.82 - 13,846,430.20
Taxable Interest 321,518.08 1,053,357.89Realized Gain/Loss 16,160.15 - 396,913.18Change In Unrealized Gain/Loss - 803,202.29 - 3,539,107.12Change In Accrued Income - 86,668.97 - 87,569.11 Period from April 1, 2022 to June 30, 2022
CURRENT PERIOD YEAR TO DATE
04/01/2022 TO 06/30/2022 07/01/2021 TO 06/30/2022
Beginning Market Value 64,715,780.71 78,460,818.58DisbursementsTotal Disbursements - 2,519,430.82 - 13,846,430.20Asset ActivityTotal Asset Activity - 552,193.03 - 2,970,231.52Net Change In Market Value - 3,071,623.85 - 16,816,661.72Ending Market Value 61,644,156.86 61,644,156.86
MARKET VALUE RECONCILIATION
FRB
24 Cash And Equivalents 137,128.02 0.22
U.S. Government Issues 42,555,572.88 69.04Corporate Issues 18,759,712.01 30.43Accrued Income 191,743.95 0.31 Period from April 1, 2022 to June 30, 2022
06/30/2022 % OF
ASSETS MARKET VALUE MARKET
Total Assets 61,452,412.91 99.69Grand Total 61,644,156.86 100.00
ASSET SUMMARY
BONDS 99.47%
25 Cash Disbursements .00 - 11,288,151.39
Benefit Payments - 16,959.16 - 34,529.40Taxable Interest 184,679.14 881,921.63Realized Gain/Loss - 213,316.72 - 637,573.53Change In Unrealized Gain/Loss - 603,784.94 - 3,430,518.26Change In Accrued Income 27,644.24 - 12,393.09 Period from April 1, 2022 to June 30, 2022
CURRENT PERIOD YEAR TO DATE
04/01/2022 TO 06/30/2022 07/01/2021 TO 06/30/2022
Beginning Market Value 64,893,280.80 78,792,787.40DisbursementsTotal Disbursements - 16,959.16 - 11,322,680.79Asset ActivityTotal Asset Activity - 604,778.28 - 3,198,563.25Net Change In Market Value - 621,737.44 - 14,521,244.04Ending Market Value 64,271,543.36 64,271,543.36
MARKET VALUE RECONCILIATION
PFM
26 Cash And Equivalents 44,557.06 0.07
U.S. Government Issues 41,692,198.17 64.87Corporate Issues 15,428,360.25 24.00Foreign Issues 494,225.00 0.77Municipal Issues 6,382,932.00 9.93Accrued Income 229,270.88 0.36 Period from April 1, 2022 to June 30, 2022
06/30/2022 % OF
ASSETS MARKET VALUE MARKET
Total Assets 64,042,272.48 99.64Grand Total 64,271,543.36 100.00
ASSET SUMMARY
BONDS 99.57%
27